ForexLive Asia FX news wrap: AUD drops after the RBA

Forex news for Asia trading on
Tuesday
2
November 2021

Forex
moves were minor during the early part of the Asian day with traders
awaiting

  • the
    Reserve Bank of Australia on Tuesday
  • and
    the Federal Open Market Committee on Wednesday

News
and data flow was light and did not move rates around to any
significant degree.

USD/JPY
rebounded just a little from its US lows to trade a little above
114.10 but soon gave it all back, dropping under 114.00 (yes, small
range only).

And
so to the RBA statement. The Bank confirmed it had ended targeting
the April 2024 Bond at 0.1%. This was never in doubt, they lost
control of it last week and the confirmation from them smacks of a
bit of a face-saving attempt.

Otherwise
it lefts its QE purchase amount of 4bn AUD
per week unchanged. The statement expressed the
Bank was remaining patient on developments in the economy and said it
needed to see wage growth ahead (repeating this for the umpteenth
time).

The
Australian dollar dropped sharply on the RBA announcement and as I
post is sitting just under 0.7500 from highs circa 0.7530 earlier in
the session. Across other major FX pairs there is not much change. 

Still to come is a press conference from RBA Governor Lowe at 4pm Sydney time (0500GMT). 

Forex news for Asia trading onTuesday2November 2021

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